Avnet Reports Q2 Revenue of $6.32B, Beating Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Reports Q2 revenue $6.32B, consensus $6.03B. "We delivered year-over-year sales growth across all of our Electronic Components regions and Farnell, and both total Company revenue and earnings per share were above our expectations. Sequentially, our adjusted operating income grew two times faster than sales, demonstrating the expected leverage in our business model. Our team's continued commitment to optimizing inventory and driving operational excellence also enabled us to generate operating cash flow and reduce days of inventory this quarter," said Avnet Chief Executive Officer Phil Gallagher. "The trends we see are encouraging, and our third quarter outlook implies above-trend seasonal growth and improving margins."
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Analyst Views on AVT
Wall Street analysts forecast AVT stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for AVT is 49.33 USD with a low forecast of 43.00 USD and a high forecast of 55.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
0 Buy
1 Hold
2 Sell
Moderate Sell
Current: 59.960
Low
43.00
Averages
49.33
High
55.00
Current: 59.960
Low
43.00
Averages
49.33
High
55.00
About AVT
Avnet, Inc. is a global electronic component technology distributor and solutions provider. It markets, sells, and distributes electronic components from electronic component manufacturers, including semiconductors, interconnect, passive and electromechanical components, and other integrated and embedded components. Its primary operating groups include Electronic Components (EC) and Farnell. EC serves a variety of markets ranging from industrial to automotive to defense and aerospace. EC offers an array of customer support options throughout the entire product lifecycle, including turnkey and customized design, supply chain, programming, logistics and post-sales services. The Farnell operating group primarily supports lower-volume customers and distributes a portfolio of kits, tools, electronic components, industrial automation components, and test and measurement products to both engineers and entrepreneurs, through an e-commerce channel. It also distributes new product introductions.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Avnet Reports Q2 2026 Earnings Exceeding Expectations
- Strong Sales Performance: Avnet's Q2 sales reached $6.3 billion, marking a 12% year-over-year increase that exceeded guidance, reflecting robust growth in both Electronic Components and Farnell businesses, particularly with record revenues in Asia.
- Improved Profitability: Adjusted diluted earnings per share of $1.05 surpassed guidance, with operating income of $187 million in Electronic Components and $20 million in Farnell, indicating ongoing enhancements in profitability across business units.
- Cash Flow and Inventory Management: Avnet generated $208 million in operating cash flow and reduced inventory by $126 million, demonstrating proactive efforts in optimizing operational efficiency and lowering financial leverage, with plans to further reduce leverage to approximately 3x over the next year.
- Optimistic Future Outlook: The CFO provided Q3 sales guidance of $6.2 billion to $6.5 billion, anticipating a sequential increase of about 1%, with management expressing confidence in the market performance for the next several quarters, particularly amid recovery in Western markets.
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Avnet Q2 Earnings Exceed Expectations
- Strong Earnings Performance: Avnet reported a Q2 non-GAAP EPS of $1.05, beating expectations by $0.10, indicating a sustained enhancement in profitability that is likely to positively impact stock prices.
- Significant Revenue Growth: The company achieved revenues of $6.32 billion, reflecting an 11.7% year-over-year increase and surpassing market expectations by $290 million, showcasing robust market performance and rising customer demand.
- Optimistic Future Outlook: For Q3 of fiscal 2026, Avnet guided sales between $6.20 billion and $6.50 billion, with a midpoint of $6.35 billion, exceeding the consensus estimate of $5.85 billion, demonstrating confidence in future growth.
- Adjusted EPS Guidance: The company anticipates adjusted diluted EPS in the range of $1.20 to $1.30, with a midpoint of $1.25, slightly above the consensus of $1.20, further solidifying investor confidence.
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